AES Brasil is a large Brazilian energy company with over 6,000 employees and $3.2 billion in annual EBITDA. It has invested $5 billion since privatization in 1998 and has a diverse portfolio that includes distribution, generation from hydroelectric plants, and telecommunications businesses. The document highlights Brazil's large renewable energy potential from hydro, wind, biomass, and small hydro sources and incentives for developing these resources.

1. Latibex Forum
November, 2009

2. AES Brasil Group
7 million Clients
... with a 2008 result:
Market Share 6 thousand AES People
R$ 3.2 billion (Ebitda)
R$ 1.7 billion (net income)
Discos
14.6%
85.4%
Gencos
3.0%
97.0%
Investments 1998 - 2008:
R$ 5 billion after privatization
AES Brasil Disco Genco
Trading Company Telecom
Others
2

3. AES Tietê
Overview
• 30 year concession until 2029 and renewable for another 30
year
• 10 hydroelectric plants in the State of São Paulo at Tietê,
Pardo and Mogi Guaçu rivers
• Installed capacity of 2,651 MW with assured energy of 1,275
MW
• 100% of assured energy contracted with AES Eletropaulo
until the end of 2015
• 8 Small Hydro Projects under analysis with total capacity of
133MW
• 2 Small Hydro Plants under construction totalizing 7 MW
UHE Bariri UHE Água Vermelha
UHE Barra Bonita UHE Caconde
UHE Ibitinga UHE Euclides da Cunha
UHE Promissão UHE Limoeiro
UHE Nova Avanhandava PCH Mogi-Guaçu
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4. Financial Facts
Investments Breakdown – R$ million Ebitda – R$ million
Ebitda Margin
New SHPPs1
79% 79% 79% 81%
Investments
75%
63
59 1,254
51 14
47 20 35 1,097 1,099
8 33 1,028
5 936
12 11
43 49
35 39
30 22
2006 2007 2008 2009(e) 9M08 9M09 2006 2007 2008 9M08 9M09
1- SHPPs Jaguari Mirim and Piabanha
Net Debt – R$ billion Net Income – R$ million
Net Margin
Net Debt / Ebitda 100 % 100 % 100 % 100 % 100 % Pay-out
0.6x 0.6x
0.4x
0.3x 0.3x 50 %
44% 44%
0.7 0.7 42% 42%
0.5 692 636
614 609
0.4 0.4 495
2006 2007 2008 9M08 9M09 2006 2007 2008 9M08 9M09 4

5. Electric Energy:
Brazil Installed Capacity
2009 2017
102,082 MW Annual Growth: 4,8% a.a. 154,645 MW
84% Renewable* 80% Renewable*
* Renewable sources = Hydro, Small Hydro Plant (SHP), Biomass and Wind
Source: 10 year Electric Expansion Plan - MME/EPE 5

6. Incentives for Renewable Energies
• Renewable sources, such as small hydros, wind, biomass, waste and solar plants with
installed capacity up to 30 MW receive public incentives
• Long-term contracts are granted to incentivized energy generators through specific
energy auctions
• Renewable energy generators and free consumers that acquire incentivized energy are
entitled to a discount (ranging from 50% to 100%) in their tariffs for the use of distribution
network
• No concession or bid process required, just an authorization from Regulatory Agency
(ANEEL)
• Tax exemption
• Special credit facilities (BNDES)
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7. Generation Potential
Hydro
Brazilian Hydroelectric Potential (MW)
Amazonas 835 77,058 28,256 106,149 42.2
Paraná 41,696 10,742 5,363 57,801 23.0
Tocantins/ Araguaia 12,198 11,297 4,540 28,035 11.2
São Francisco 10,290 5,550 1,917 17,757 7.1
Atlântico Sudeste 4,107 9,501 1,120 14,728 5.9
Uruguai 5,182 6,482 1,152 12,816 5.1
Atlântico Sul 1,637 1,734 2,066 5,437 2.2
Atlântico Leste 1,100 1,950 1,037 4,087 1.6
Paraguai 499 846 1,757 3,102 1.2
Parnaíba 225 819 0 1,044 0.4
Atlântico NE Oc. 0 58 318 376 0.1
Atlântico NE Or. 8 127 23 158 <0.1
Total 77,777 126,164 47,549 251,490
100.0
% 30.9 50.2 18.9 100.0
Source: 10 year Electric Expansion Plan - MME/EPE 7

8. Generation Potential
Bioelectricity
Potential Bioelectricity Market for Export (MWavg)
13,158
12,158
11,158
10,158
9,158
CAGR: 18% 8,158
7,158
6,158
5,158
4,158
3,358
1,800 2,087
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20
20
20
20
20
20
20
20
20
Source: Unica 8

9. Generation Potential
Wind
First Energy Auction from Wind Farms
TOTAL WIND POTENTIAL OF 143.5 GW
approved by the Regulatory Agency (ANEEL)
North 9%
• Auction scheduled for 14th of December of 2009 (12.8 GW)
Northeast 52%
• Energy supply through wind farms starting in
(75 GW)
July, 2012
• 20 years PPA Center West 2%
• Ceiling bidding prices established in US$ (3.1 GW)
93/MWh (Dutch Auction) (FX = R$ 2.02 /US$)
Southeast 21%
• Estimated amount of energy to be (29.7 GW)
South
commercialized:13.3 GW (441 subscribed
16%
projects)
(22.8 GW)
Source: ANEEL, Eletrobras 9

10. Generation Potential
Small Hydro
Installed Capacity (MW)
5,356
COD with environmental hazard
COD with environmental restrictions
COD without any restrictions
3,845
In operation 3,806
3,677
3,240
2,507
1,733
1,090
837
609
415 483
92 147
23
2014...
2010
2011
2012
2013
2000
2007
2008
2009
2001
2002
2003
2004
2005
2006
Source: ANEEL
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11. The statements contained in this document with
regard to the business prospects, projected operating
and financial results, and growth potential are merely
forecasts based on the expectations of the
Contacts:
Company’s Management in relation to its future
performance. Such estimates are highly dependent ri.aestiete@aes.com
on market behavior and on the conditions affecting
Brazil’s macroeconomic performance as well as the + 55 11 2195 7048
electric sector and international market, and they are
therefore subject to changes.